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Case studies of arts organizations leveraging technology through new and novel approaches, research updates from AMTLab contributors, and monthly summaries of technological happenings in the arts management world.

Blockchain originated in the world of cryptocurrencies, but its applications are expansive. This post focuses on solely on some of the most relevant applications for the arts.

Smart Contracts

Smart contracts conceptually emerged in the 1990s. The idea behind smart contracts was to create a contract where the terms were embedded in computer code, and when external conditions triggered specific contract parameters, the document would self-execute its terms via the web. For example, if a consumer purchased travel insurance via a smart contract, and experienced a flight cancellation, then program would receive the flight cancellation information and automatically release the reimbursement.[1] This process would eliminate the need for filing and verifying claims.

Blockchain technology presents a substantial step towards making fully enabled smart contracts a reality. Smart contracts typically run on the Ethereum blockchain, or those similarly styled. Unlike the Bitcoin blockchain, Ethereum style blockchains allows conditions to be placed upon transactions.[2] Simple if-then code parameters open up a world of self-executing transaction possibilities. To monitor condition changes most smart contracts utilize oracles, which are real world third party data feeds.[3] In the airline hypothetical, the oracle would contain real time flight status data that is fed to the smart contract. If the oracle communicates a flight cancellation, then the customer is immediately compensated per the contract specifications.

Smart contracts are appealing because they limit the possibilities of breach. Neither party can alter the terms of a smart contract once it is created. In a smart contract the computer determines if a term of the contract has been performed and automatically triggers the preset response.[4] The automation of enforcement is the primary difference between a smart contract and a regular contract.[5]

Outside of standard business contracting, for the arts smart contracts may positively impact initiatives which include museum collections traveling outside of the museum. Supply chain industry adoption of blockchain is growing,[6] and this could have a dramatic impact on the ways that museums transport art. Art work is often accompanied by a courier when it is shipped for a traveling or temporary exhibit. The implementation of blockchain based shipping systems may mitigate some of the risk of shipping art by enabling real-time tracking of shipments and increasing transparency and lowering costs.[7]

Art Provenance and Sale

In the same manner that the blockchain records the provenance of every Bitcoin, blockchains may be used to record the provenance of artwork. In the private art market, systems such as Verisart[8] and Codex[9] are utilizing blockchain platforms to manage certificates of authenticity and sale. These types of platforms may be useful for artists who create work solely in the digital medium as they are able to create limited edition “prints” of their work, establish scarcity, and thus generate ownership value.[10] Some highly integrated art blockchains offer financial services where the blockchain is paired with bank services to offer secure mechanisms to execute loans back by artistic collateral.

Heritage protection groups and museums are labeling endangered art with smart water codes which are then registered.[11] If the are tracked on a blockchain then should these artifacts subsequently end up on the market, they may be easily checked against the blockchain for their provenance record.

Information accessibility

Blockchain presents opportunities to increase public access to information. For example, should arts organizations place their digital collection records on a single blockchain would create an unprecedented opportunity for academic collaboration and information sharing. Open educational resources placed on national blockchain would ensure a trusted content source for teachers and educators.

There are many disruptive uses of blockchain technology in the information sciences. For example, blockchain may be used to create large metadata systems, protect digital first sale rights, and further develop connected networks of libraries and universities. E-verification identify systems could create a universal library card system.[14] Digital skills and other personal training opportunities offered by libraries could be validated through a system of blockchain based badges or certificates thereby increasing stakeholder’s marketable expertise. Each of these proposed uses dramatically increase community access to libraries and information as well as promote lifelong learning.